Legal & General announces first Canadian Pension Risk Transfer transaction
Legal & General Group plc (“Legal & General”) announces that it has agreed its first Pension Risk Transfer (PRT) transaction in Canada for more than CAD $200 million (£114 million). The Canadian PRT market is an attractive and fast-growing market, which has more than doubled in size over the last five years to reach sales in 2018 of CAD $4.6 billion (£2.6 billion).
The transaction is being written by Brookfield Annuity Company and Legal & General Reinsurance Company Limited (“Legal & General Reinsurance”) who have recently entered into a strategic partnership under which Legal & General Reinsurance will provide quota-share reinsurance for Canadian PRT transfers. This is the first PRT transaction for the strategic partnership, with Legal & General Reinsurance taking a meaningful quota-share of the total buy-in liabilities written by Brookfield Annuity Company.
Including this transaction, Legal & General has now written £2.5 billion in International PRT since its first transaction in 2015. Central to Legal & General’s international strategy is the US PRT business, which has written USD $2.7 billion in premiums across 45 transactions. Legal & General offers a full suite of solutions in the US PRT market for a range of transaction sizes, including buy-ins, buyouts and deferred lives.
Nigel Wilson, Group CEO, Legal & General:"I am delighted to announce our first PRT transaction in Canada, where the market is growing strongly. The transaction provides further evidence of our appetite and capability to grow our PRT business internationally."
Thomas Olunloyo, CEO of Legal & General Reinsurance:"We are excited by the opportunity to provide reinsurance into the Canadian pension risk transfer market. We look forward to working with Brookfield Annuity Company who are a rapidly growing specialist provider of pension de-risking products."
Paul Forestell, CEO of Brookfield Annuity Company:"We are pleased to partner with Legal & General Reinsurance and bring our capabilites to this transaction. Our partnership with Legal & General offers additional capacity for a rapidly expanding Canadian market."
Further information
John Godfrey
Director of Levelling Up, Group Communications
Margrit Williams
Director of External Engagement, Legal & General Capital
Notes to editors
Established in 1836, L&G is one of the UK's leading financial services groups and a major global investor, with £1.2 trillion in total assets under management (as at FY25) of which c. 43% (c. £0.5 trillion) is international. We have a highly synergistic business model, which continues to drive strong returns. We are a leading player in Institutional Retirement, in Retail Savings and Protection, and in Asset Management through both public and private markets. Across the Group, we are committed to responsible investing and dedicated to serving the long-term savings and investment needs of customers and society.